28 May , 2025 By : Debdeep Gupta
Benchmark indices Nifty and Sensex opened the session on a weak note on May 27 after a fall in auto, FMCG and metal stocks instilled nervousness on the bourses. FMCG major ITC slipped as British American Tobacco Plc sold 32 crore shares of the company. On the other hand, the broader market remained resilient despite weakness in largecap names.
At about 9:30 am, the Sensex was down 200.99 points or 0.25 percent at 81,350.64, and the Nifty was down 57.90 points or 0.23 percent at 24,768.30. About 1605 shares advanced, 1097 shares declined, and 137 shares remained unchanged.
Markets rode a rollercoaster on May 27, with the Sensex swinging nearly 1,300 points in a dramatic session that saw bulls and bears battle for control. Heavy selling in auto, IT, and FMCG stocks dragged the Nifty and Sensex off their two-day winning streak.
"Positive cues from the US market, weak dollar and soft gold will provide a favourable macro construct for the equity market today," says V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. "Large liquidity with the mutual funds and the trend of sustained SIP inflows would encourage fund managers to buy consistently. Tariff-related issues and President Trump’s comments on a whole host of economic and non-economic issues would continue to weigh on markets. The MPC is almost certain to cut policy rates by 25 bp in the June 6th policy meeting. Therefore, rate-sensitive sectors will be in focus in the coming days," he added.
NSE sectoral indices opened on a mixed note, with gains in IT, energy, and broader market indices offset by weakness in autos, metals, and consumer durables. The Nifty IT index rose 0.39 percent, while energy and infrastructure gained 0.34 percent and 0.12 percent, respectively. The Nifty Smallcap 100 and PSU Bank indices also edged higher, up 0.48 percent and 0.26 percent. On the flip side, the Nifty Auto index declined 0.26 percent, metals dropped 0.35 percent, and consumer durables slipped 0.29 percent. Bank indices remained muted, with private banks down 0.09 percent and the Nifty Bank marginally lower by 0.03 percent. Meanwhile, market volatility inched up further, with the India VIX rising 2.37 percent to 18.98.
Shares of LIC gained over 3 percent even as it released a mixed Q4. Most brokerages maintained a bullish stance on the stock, citing improving margins and attractive valuations as key growth drivers in the near term. Analysts highlighted a higher contribution from non-participating (non-par) policies, which positively impacted LIC’s Value of New Business (VNB) margin in Q4. Management also sounded optimistic about a rebound in premium growth.
Shares of Naukri.com parent Info Edge (India) fell over a percent even as its net profit jumped 647 percent to over Rs 740 crore during the fourth quarter, compared to Rs 162 crore in the same quarter last year. The multi-fold jump was on account of a joint venture being reclassified as financial investments, other income, which was partially offset by provisions and impairments of about Rs 127 crore.
Cigarette-to-FMCG conglomerate ITC Ltd's share slipped over 3 percent on May 28 after British American Tobacco Plc (BAT) sold a massive 32 crore shares or 2.57 percent of its stake in ITC worth Rs 13344 crore. This marks its second such sale, after selling a 3.5 percent stake through block deals for Rs 16,690 crore last year.
"Technically, the Nifty index formed a bearish candle on the daily chart, indicating weakness. However, the index is still placed above its 21-Day Exponential Moving Average (21-DEMA), which is positioned near 24,556. As long as the index holds above this level, the probability of a pullback move can’t be ruled out. On the upside, the index is likely to face strong resistance near the 25,000–25,100 zone," Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment, said.
Analysts expect the Bank Nifty to continue trading within the broad range of 56,000 to 53,500 in the near term. A move above 56,000 would indicate a potential acceleration of the uptrend towards 56,700 in the coming sessions. Over the past 23 sessions, the index has retraced just 38.2 percent of the preceding nine-session rally from 49,157 to 56,098—seen as a shallow pullback that signals underlying strength and the possibility of a higher bottom formation.
Jio Financial Services, HDFC Life Insurance, Infosys, SBI, and Bharti Airtel were the top gainers on the Nifty. ITC, JSW Steel, Titan Company, IndusInd Bank, and Tata Consumer Products were the major laggards on the index.
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